Built from weaker models, sales multiples or analyst targets, so treat it as a rough guide.
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Valued as a utility: P/E comparison and EV/EBITDA comparison.
ACCE opinionGlobal Water Resources Inc. Common Stock (GWRS)
Fair value (3 models)
Not available
ACCE price target
$8.00
Rating
Not rated
Horizon
12 months
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $7.93 at the close on 23 Oct 2026, 22:00 CEST.
Models: EV/EBITDA comparison and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
ACCE score
54
out of 100
Analysts
50% buy
2 covering
P/E
79.3x
forward 61.0x
1-year return
-24.8%
Dividend yield
3.85%
Global Water Resources Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Global Water Resources operates regulated water and wastewater utilities in Arizona, New Mexico and Pennsylvania, earning returns on rate base set by state commissions rather than on volume. The structural case rests on that regulated model: population growth in its Arizona and New Mexico service territories supports rate base expansion, and a 71.9% gross margin reflects how little of each revenue dollar goes to purchased inputs. Revenue grew 24.8% in the latest period, and the forward P/E of 62.1 against a trailing 80.9 implies the market expects earnings to catch up with that top-line growth. The price is the problem: a 3.9% ROE and a 25.4% operating margin leave little room for error on a 233M market cap, and the stock sits outside every major index, so the valuation is not being defended by institutional demand. This screens as a name worth a look at the rate case calendar and the capital spending plan, but the multiple needs to be justified by earnings conversion before it deserves conviction.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Negative free cash flow
Free cash flow is -$47.2M against a $220M market cap, while debt/equity sits at 1.60. The company is funding its build-out with borrowing and equity, not operating cash.
high
Extreme valuation multiples
P/E of 76.5 and forward P/E of 62.1 price in a lot of growth. A 5.2% net margin and 3.9% ROE leave little room for error if earnings growth slows.
moderate
Sharp quarter-on-quarter drop
Revenue fell 12.7% QoQ even though it grew 24.8% YoY. That gap is worth checking against the company's filings before reading the annual growth as a steady trend.
moderate
Heavy insider ownership
Insiders hold 55.3% of the shares, so public holders have limited influence over governance. Recorded insider activity shows $0.26M in buys and no sales, which is small against the market cap.
AI research notes
AI-assisted·How I use AIWritten Oct 23, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Revenue grew 24.8% year over year, well above its 7.6% average annual pace over the last five years.
Analysts' mean price target of $10.30 sits 30.4% above the current share price.
The company beat earnings expectations, reporting 0.04 per share against 0.03 expected, a 33.3% surprise.
Why it could disappoint
Free cash flow over the last twelve months was negative at -$47M, so the business is consuming cash rather than generating it.
At 76.5x trailing earnings and 62.1x forward earnings, the stock costs far more than the sector median forward multiple of 18.3x.
Return on equity is just 3.9% and return on invested capital only 1.1%, while debt to equity stands at 1.60.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where GWRS's valuation models land
Price
$7.93
Model fair valueConfidence: low
about $1.65
Model
Fair value
Upside
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores